FTC Launches Office of Technology to Support its "Commitment to Protecting Consumers in the Digital Marketplace"

The Federal Trade Commission recently announced that it is launching a new Office of Technology in order to "strengthen the FTC’s ability to keep pace with technological challenges in the digital marketplace by supporting the agency’s law enforcement and policy work." 

In a statement, FTC Chair Lina M. Khan explained, "For more than a century, the FTC has worked to keep pace with new markets and ever-changing technologies by building internal expertise.  Our office of technology is a natural next step in ensuring we have the in-house skills needed to fully grasp evolving technologies and market trends as we continue to tackle unlawful business practices and protect Americans."  

According to the FTC, the Office of Technology, which will be led by Chief Technology Officer Stephanie T. Nguyen, will support the FTC's work by:

• Strengthening and supporting law enforcement investigations and actions;
• Advising and engaging with other FTC staff the the Commissioners on policy and research initiatives; and 
• Highlighting market trends and emerging technologies that impact the FTC's work. 

In connection with the launch of the new Office of Technology, Sam Levine, the Director of the FTC's Bureau of Consumer Protection, published a blog post describing the predecessor to this new office, the Office of Technology Research and Investigation, and explaining that the establishment of the new office is "an important next-step development in the agency's commitment to protecting consumers in the digital marketplace." 

So, what does this mean for advertisers? 

In a speech last year, Nguyen explained that her role at the FTC was to make sure that "the largest corporations follow the law and treat people like human beings."  She explained then that, "I have seen firsthand how technology can enable or sometimes exacerbate real life harms.  This means patients seeking access to healthcare with the threat of their data beings shared to law enforcement, or small-town goat farmers who lack the right to choose who can repair their tractors."  

Then, in announcing the creation of the new Office of Technology, she further explained that, "some technologies can facilitate substantial injury to consumers, are misleading, or may negatively affect competitive conditions."  She then gave some examples, which included "the rise of the surveillance economy," "companies' widespread application of of artificial intelligence," and "business models that employ tech to disrupt markets."  

Nguyen said that her office will work with FTC staff and leadership to "strengthen and support the agency on enforcement investigations and litigated cases."  Some of the examples she gave of potential types of cases they could work on included AI-powered products, digital advertising ecosystems, the collection and sale of location data, opaque algorithms that make decisions affecting millions of consumers, and augmented and virtual reality.

For years, the FTC has devoted substantial resources to addressing new types of harms caused to consumers by emerging technology.  The creation of the new Office of Technology not only further emphasizes how seriously the FTC continues to take these issues, but should serve as big warning to marketers to consider how their use of technology may negatively impact consumers.